O 150 P-1
SUPPLEMENT DATED FEBRUARY 1, 2000
TO THE PROSPECTUS OF
FRANKLIN BALANCE SHEET INVESTMENT FUND
DATED MARCH 1, 1999
The prospectus is amended as follows:
I. As of February 1, 2000, the fund is open to new investors. The fund,
however, reserves the right to modify this policy at any time.
II. The management team on page 10 is amended to read:
The team responsible for the fund's management is:
BRUCE C. BAUGHMAN, SENIOR VICE PRESIDENT OF ADVISORY SERVICES
Mr. Baughman has been a manager of the fund since 1990. He joined the
Franklin Templeton Group in 1988.
WILLIAM J. LIPPMAN, PRESIDENT OF ADVISORY SERVICES
Mr. Lippman has been a manager of the fund since its inception and has more
than 30 years' experience in the securities industry. He joined the Franklin
Templeton Group in 1988.
MARGARET MCGEE, VICE PRESIDENT OF ADVISORY SERVICES
Ms. McGee has been a manager of the fund since 1988. She joined the Franklin
Templeton Group in 1988.
III. The section "Distribution and Service (12B-1) Fees" on page 14 is
amended to read:
DISTRIBUTION AND SERVICE (12B-1) FEES The fund has a distribution plan,
sometimes known as a Rule 12b-1 plan, that allows the fund to pay
distribution fees of up to 0.25% per year to those who sell and distribute
the fund's shares and provide other services to shareholders. Because these
fees are paid out of the fund's assets on an on-going basis, over time these
fees will increase the cost of your investment and may cost you more than
paying other types of sales charges.
IV. The section "Buying Shares" on page 19 is replaced in its entirety with
the following:
[Insert graphic of paper with lines and someone writing]
BUYING SHARES
MINIMUM INVESTMENTS
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INITIAL ADDITIONAL
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Regular accounts $1,000 $50
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UGMA/UTMA accounts $100 $50
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Retirement accounts no minimum no minimum
(other than IRAs, IRA rollovers, Education
IRAs or Roth IRAs)
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IRAs, IRA rollovers, Education IRAs or Roth $250 $50
IRAs
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Broker-dealer sponsored wrap account programs $250 $50
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Full-time employees, officers, trustees and $100 $50
directors of
Franklin Templeton entities, and their
immediate family members
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PLEASE NOTE THAT YOU MAY ONLY BUY SHARES OF A FUND ELIGIBLE
FOR SALE IN YOUR STATE OR JURISDICTION.
Certain Franklin Templeton Funds offer multiple share classes not offered by
this fund. Please note that for selling or exchanging your shares, or for
other purposes, the fund's shares are considered Class A shares.
ACCOUNT APPLICATION If you are opening a new account, please complete and
sign the enclosed account application. To save time, you can sign up now for
services you may want on your account by completing the appropriate sections
of the application (see page 20).
BUYING SHARES
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OPENING AN ACCOUNT ADDING TO AN ACCOUNT
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[Insert graphic Contact your Contact your
of hands shaking] investment investment
representative representative
THROUGH YOUR
INVESTMENT
REPRESENTATIVE
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[Insert graphic Make your check Make your check
of envelope] payable to Franklin payable to Franklin
Balance Sheet Balance Sheet
BY MAIL Investment Fund. Investment Fund.
Include your account
Mail the check and number on the check.
your signed
application to Fill out the deposit
Investor Services. slip from your account
statement. If you do
not have a slip,
include a note with
your name, the fund
name, and your account
number.
Mail the check and
deposit slip or note
to Investor Services.
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[Insert graphic Call to receive a wire Call to receive a wire
of three lightning control number and control number and
bolts] wire instructions. wire instructions.
BY WIRE Wire the funds and To make a same day
mail your signed wire investment,
1-800/632-2301 application to please call us by 1:00
(or 1-650/312-2000 Investor Services. p.m. Pacific time and
collect) Please include the make sure your wire
wire control number or arrives by 3:00 p.m.
your new account
number on the
application.
To make a same day
wire investment,
please call us by 1:00
p.m. Pacific time and
make sure your wire
arrives by 3:00 p.m.
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[Insert graphic of Call Shareholder Call Shareholder
two arrows pointing Services at the number Services at the number
in opposite below, or send signed below or our automated
directions] written instructions. TeleFACTS system, or
The TeleFACTS system send signed written
BY EXCHANGE cannot be used to open instructions.
a new account.
TeleFACTS(R) (Please see page 21
1-800/247-1753 (Please see page 21 for information on
(around-the-clock for information on exchanges.)
access) exchanges.)
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FRANKLIN TEMPLETON INVESTOR SERVICES P.O. BOX 997151,
SACRAMENTO, CA 95899-9983
CALL TOLL-FREE: 1-800/632-2301
(MONDAY THROUGH FRIDAY 5:30 A.M. TO 5:00 P.M., PACIFIC TIME
SATURDAY 6:30 A.M. TO 2:30 P.M., PACIFIC TIME)
V. The section "Automatic Investment Plan" on page 20 is replaced with the
following:
AUTOMATIC INVESTMENT PLAN This plan offers a convenient way for you to invest
in the fund by automatically transferring money from your checking or savings
account each month to buy shares. The minimum investment to open an account
with an automatic investment plan is $50 ($25 for an Education IRA). To sign
up, complete the appropriate section of your account application.
VI. The section "Exchange Privilege" on page 21 is revised to reflect that as
of February 1, 2000, exchanges into the fund from other Franklin Templeton
Funds will be accepted to establish a new account.
VII. The first paragraph under "Selling Shares" on page 23 is replaced with
the following:
You can sell your shares at any time.
VIII. In the Selling Shares table on page 24 the section "By Wire" is
replaced with the following:
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[Insert graphic You can call or write to have redemption
of three lightning proceeds sent to a bank account. See the
bolts] policies above for selling shares by mail or
phone.
BY ELECTRONIC
FUNDS Before requesting to have redemption proceeds
TRANSFER (ACH) sent to a bank account, please make sure we have
your bank account information on file. If we do
not have this information, you will need to send
written instructions with your bank's name and
address, a voided check or savings account
deposit slip, and a signature guarantee if the
ownership of the bank and fund accounts is
different.
If we receive your request in proper form by
1:00 p.m. Pacific time, proceeds sent by ACH
generally will be available within two to three
business days.
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IX. The section "Accounts with Low Balances" on page 25 is replaced with the
following:
ACCOUNTS WITH LOW BALANCES If the value of your account falls below $250 ($50
for employee and UGMA/UTMA accounts) because you sell some of your shares, we
may mail you a notice asking you to bring the account back up to its
applicable minimum investment amount. If you choose not to do so within 30
days, we may close your account and mail the proceeds to the address of
record. You will not be charged a CDSC if your account is closed for this
reason.
X. The section "Statements and Reports" on page 25 is replaced with the
following:
STATEMENTS AND REPORTS You will receive quarterly account statements that
show all your account transactions during the quarter. You also will receive
written notification after each transaction affecting your account (except
for distributions and transactions made through automatic investment or
withdrawal programs, which will be reported on your quarterly statement). You
also will receive the fund's financial reports every six months. To reduce
fund expenses, we try to identify related shareholders in a household and
send only one copy of the financial reports. If you need additional copies,
please call 1-800/DIAL BEN.
If there is a dealer or other investment representative of record on your
account, he or she also will receive copies of all notifications and
statements and other information about your account directly from the fund.
Please keep this supplement for future reference.
